A Guide to Common UK Energy Terms and Acronyms

When managing your company’s energy, you’ll come across countless acronyms, abbreviations, and jargon. Some appear on your energy bills or contracts, while others relate to other topics like compliance and sustainability.

We know that you don’t have the time to become an expert in something that is a small part of your daily responsibilities. That’s why we’ve broken down all the UK energy acronyms and terms so you can find out the relevant information quickly and easily.

A

AMR: Automatic Meter Read:

You can get automatic meter readings remotely through this system, which uses telephone technology and can transfer the data to a billing system.

AQ: Annual Quantity:

All your annual consumption from all meters on a site is calculated into your annual quantity. The amount is based on historical data and is measured in kWh for electric or Therms for gas.

Availability (kVa):

This refers to the limit capacity for a site. The maximum demand should not exceed that figure, and it is set and charged by the local Distribution Network Operator (DNO). It may be seen as a Capacity Charge on your bill and is used for investment and maintenance.

B 

Base Load:

This is used to state what your minimum amount of electricity usage would be. If you don’t drop below a certain demand, say 250 kVa, then this will be the base load for that site.

Bearish Market Behaviour: 

This is a common trading term used in market updates. Bearish behaviour is a period of time where price decreases can start or have already started.

BETTA: British Electricity Trading and Transmission Agreements

BETTA introduced a single wholesale electricity market for Great Britain with a single Transmission System operation (National Grid) independent of generation and supply.

Biofuel:

This is obtained from organoc matter from plants or from industrial, commercial, domestic, or agricultural products.

Brent Crude Oil Benchmark:

This serves as a reference price for traders and buyers of crude oil. The three primary benchmarks are: West Texas Intermediate (WTI), Brent Blend, and Dubai Crude.

Bullish Market Behaviour: 

The opposite of bearish behaviour, this is another trading term commonly used in market updates. Just as bearish behaviour is where prices decrease, this is a period where prices are about to increase or have increased.

C

Capacity Market:

A third-party charge that is set by the Distribution Network Operation (DNO) which is used for investment and maintenance of the electricity network. It is based on the Agreed Capacity of a property. It may also be called the Availability Charge.

Carbon Insetting:

A business can look at their supply chain and invest in carbon reduction projects by collaborating with its supply chain. This can help to strengthen relationships and help suppliers reduce their carbon footprint.

Carbon Offsetting:

Businesses can invest in environmental projects around the world that will allow them to offset their own carbon footprints. These projects are often in developing countries and will help to reduce future emissions.

CCA: Climate Change Agreement

An agreement between the Environment Agency and businesses where a commitment to reduce energy consumption and/or carbon emissions is agreed upon for a reduced Climate Change Levy rate to the business.

CCL: Climate Change Levy

This tax is designed to encourage energy efficiency and reduce carbon emissions. It applies to electricity, gas, and solid fuels used by businesses across industrial, commercial, agricultural, and public sectors.

CCS: Carbon Capture/Storage

Carbon dioxide can be captured and stored as it gets released into the atmosphere from fossil fuels before or after combustion.

CHP: Combined Heat and Power Generation

A system designed to recover a proportion of wasted heat to power a turbine that can generate more electricity. These also have the potential to lower carbon dioxide emissions.

CO2e: Carbon Dioxide Equivalent

Each main greenhouse gas is translated into a carbon dioxide equivalent so that the total impact can be summed up by one figure.

CoS: Change of Supplier 

This term is used when you have changed your supplier, either gas, electricity, or water, and need to update the old supplier to the new one. Meter readings will need to be provided to the old supplier and the new one to ensure that billing is updated correctly.

CoT: Change of Tenancy

Used when a business moves into a new premises. The suppliers of the gas, power, and water utilities will need to be made aware that the old tenant has moved out and a new one has moved in.

D

DBT:

This stands for Department of Business and Trade.

DESNZ:

This stands for the Department for Energy Security and Net Zero.

DNO: Distribution Network Operator 

Companies responsible for the network that connects the consumer to the national grid system. There are currently 14 regional distributors who maintain and operate the electrical network.

DSR: Demand Side Response

Businesses can be given financial incentives to change the amount of energy used in response to signals from the National Grid at peak energy demand.

DUoS: Distribution Use of System Changes

Charges that are billed by the distribution company for delivering electricity from the Grid Supply Point to the customer.

E

EAC: Estimated Annual Consumption

This is measured in kWh for the year and is what is thought to be the organisation’s annual energy consumption.

EDI: Electronic Data Interchange

A secure system where documents such as invoices and contracts can be sent to the consumer.

EII: Energy Intensive Industries

Energy-intensive industries refer to industrial sectors, usually manufacturing, that are high users of energy. For these industries, energy costs are often a high proportion of their production costs.

EPC: Energy Performance Certificate

A certificate intended to inform buyers or tenants about the energy performance of a building. The scale runs from A to G, with A being the most efficient.

ESOS: Energy Savings Opportunity Scheme

A mandatory assessment program aimed at reducing greenhouse gas emissions and promoting energy efficiency within larger organisations. ESOS requires qualifying businesses to complete comprehensive assessments of their energy use in all areas of their business every four years.

ETS: Emissions Trading Scheme

The EU directive for trading carbon dioxide. This market-based policy will limit the amount of greenhouse gases that can be emitted; the EU directive covers over 11,000 installations, which include power stations, industrial plants, and airlines.

F

Fixed Contract:

A fully fixed contract that locks in both commodity and third-party charges under a single unit rate for the duration of the entire contract term. This is ideal for businesses that want simplicity; these contracts offer price stability, but that comes with a premium.

Flexible Contract:

A contract that allows you to buy energy in smaller quantities over time, allowing you to manage the risk better.

Flexible Energy Basket:

A contract that lets businesses pool tradeable volumes with others to leverage better buying power and secure favourable rates.

FMD: Fuel Mix Disclosure

This ensures that all suppliers calculate and publish the fuel source and emissions intensity of the supplied electricity.

Fundamentals:

Another trading term that we use in market updates. This is used when discussing ‘bearish’ or ‘bullish’ behaviour and the reasons that need to be factored in as to why these periods may have occurred or be due to occur.

FiT: Feed-in Tariff

This government scheme encourages renewable energy generation by offering incentives for electricity that is fed back into the grid.

G

GGCS: Green Gas Certification Scheme

This scheme issues, transfers, and retires Renewable Gas Guarantees of Origin. It ensures that only one RGGO is issued per unit injected, that the RGGO is allocated to only one customer and that it is transferred securely.

GGL: Green Gas Levy

A government-funded tax supporting the development of greener fuels and the decarbonisation of gas supplies. It is also used to help the transition to a low-carbon energy system and supports biogas production.

GWh: Gigawatt Hour

A gigawatt hour is a unit of power, and it is equal to one billion watts. One gigawatt hour is equal to 1,000 megawatt hours, or 1,000,000 kilowatt hours.

GHG: Greenhouse Gases

These include water vapour, carbon dioxide, methane, nitrous oxide, halogenated fluorocarbons, ozone, perfluorinated carbons, and hydrofluorocarbons. These gases contribute to the greenhouse effect.

GSP: Grid Supply Point

The point where energy is taken from the transmission system at the National Grid to a local distribution system.

GSHP: Ground Source Heat Pump

A type of heat pump that capitalises on the natural heat storage ability of the earth to heat/cool a building.

H

Half-Hourly Data

Electricity meter readings that are taken every 30 minutes.

Half-Hourly Meters

The meters that allow the half-hourly data to be collected.

K

KWh: Kilowatt Hour

The unit of electricity used in nearly all instances of pricing, contracts, and billing.

L

LDZ: Local Distribution Zone

A specified and authorised area where a distributor of natural gas will operate.

M

MOP: Meter Operator

The company that will go to a site, fit the meters, and provide the ongoing maintenance.

MOP Charges: Meter Operator Charges

These third-party charges are added to electricity invoices to ensure the ongoing maintenance of meters.

MPAD: Metering Point Address Details

The site address where the meter is.

MPAN: Meter Point Administration Number

Also known as the ‘S’ number, this identifies the point of the electricity supply.

MPRN: Meter Point Reference Number

This identifies the point of the gas supply.

MTC: Meter Time Switch Code

This is how many meter reads or dials your electricity meter has and what times they operate during the day.

MWh: Megawatt hour

A unit of energy, 1 MWh is equal to 1000 kWh.

N

NCC: Networking Charging Compensation Scheme

Some organisations within qualifying Energy Intensive Industries can get 60% compensation on their network charging costs through this government scheme.

National Grid ESO

The electricity system operator.

NHH: Non-half hourly data

meter readings that are taken less frequently than every half an hour.

NTS: National Transmission Systems

The high-pressure gas network from the National Grid

NETA: New Electricity Trading Arrangements

This replaced ‘the pool’ in England and Wales from March 2001. These are based on bilateral trading between generators, suppliers, traders, and customers.

O

OFGEM: Office of Gas and Electricity Markets

The government regulator who oversees the gas and electricity markets.

P

Pass-through Contract

A pass-through contract will split your energy bill between fixed commodity costs and variable non-commodity charges. If the non-commodity unit rates change, these will be reflected in future bills.

PPA: Power Purchase Agreements

A contract that allows electricity to be purchased from a specific generator.

R

RECs: Renewable Energy Certificates

Also known as ‘Green Certificates’, these show the environmental attributes of the power that has been produced from renewable energy projects.

REGOs: Renewable Energy Guarantee of Origin

This is an electronic certificate used to evidence that a unit of electricity has been produced by a renewable generator.

RGGO: Renewable Gas Guarantee of Origin

This is a certificate that is issued when a kWh of green gas is injected into the grid. The RGGO will include information such as where, when, and how the unit of gas was produced.

RO: Renewable Obligation

A government scheme to support renewable energy. Electricity suppliers have to ensure a certain amount of their electricity sales are from accredited renewable sources under the CCL scheme.

S

SECR: Streamlined Energy and Carbon Reporting 

Large businesses are required to disclose their energy use and carbon emissions in their annual reports. The government policy aims to increase the number of companies that report on their energy use and carbon emissions and therefore energy-efficient business objectives.

SED: Supply End Date

When a business changes their supplier or they move premises, they will need to let their current supplier know. They will then receive a Supply End Date which is the final day that the supplier will provide the energy, gas, or water supply.

SSD: Supply Start Date

If there is a change in tenancy or change of supplier, the Supply Start Date will be the date that the new supplier will start providing the energy, gas, or water supply.

STOD: Seasonal Time of Day

electricity is supplied at different unit rates depending on the time of day and season.

T

Transmission Network 

The network of cables and pylons that transmit the higher voltage between power stations and consumers.

TNUoS: Transmission Use of System

Third-party charges that cover the transmission network costs from the National Grid to the local distribution company.

Transmission Losses 

As energy is transmitted between generators to local distribution networks, there will be some lost electricity. Suppliers have to make certain calculations to determine the level of loss.

U

Unit price

The unit charge is for the energy consumption by the business, usually billed by kWh.

W

Wholesale Market

The market where gas and power are bought and sold between generators, producers, suppliers, and retailers before it reaches the final consumer.

This non-exhaustive list of industry terms and acronyms highlights just how complex managing energy can be. With so much terminology to navigate, spanning billing, contracts, compliance, and sustainability, it’s no surprise that businesses find it challenging to stay on top of their energy strategy.

Understanding these terms is just the first step. If you need further clarity or support in managing your energy effectively, we’re here to help. Our expertise ensures that you can focus on running your business while we simplify the complexities of energy for you.